Tax evasion penalties are restructured with graded imprisonment and fine linked to under-reporting and amounts evaded. The amendment substitutes the penal provisions for wilful attempts to evade tax, penalty or interest, and for under-reporting of income, under the Income-tax law. It introduces graded punishment linked to the amount sought to be evaded or the tax on under-reported income. Higher amounts attract simple imprisonment up to two years, intermediate amounts attract simple imprisonment up to six months, and all other cases are punishable with fine. A separate graded scheme applies to wilful attempts to evade payment of tax, penalty or interest.